2nd Circ. Shuts Down GE Stock Inflation Action

Law360, New York (September 19, 2011, 2:37 PM EDT) -- The Second Circuit said Monday that a proposed class of investors alleging General Electric Co. hid financial information that caused its stock price to fall when the truth was revealed hadn't shown any intent to defraud by the company or its executives.

The suit — which claims that GE made rosy projections about its results and induced investors to buy the stock, which then tumbled — didn't allege enough to show that the company had acted with scienter, the knowing intent to defraud investors, according to...